ConvERSE, 11 de Maio 2018 |1

Inovação na Energia

Inovação na EnergiaNuno Souza e Silva, Managing Director – R&D Nester

ConvERSE, 11 de Maio 2018

ConvERSE, 11 de Maio 2018 |2

Inovação na Energia

Presentation Content

• Network and System Operator goals

• Why the need for Innovation?

• Support for Innovation

• Innovation work being developed

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Inovação na Energia

3 key goals in current National and Regional Energy PoliciesSecurity of Supply (SoS), Competitiveness and Sustainability

Security of supply

SustainabilityCompetitiveness

Smart grids and demand side management

Storage and electrical vehicles

Social, Economic and environmental

factors

Renewables

New technologies

Energy markets

integrationDistributed generation

In a fast changing energy paradigm…

... 3 major goals prevail in every Energy Policy

Security of supply

Competitiveness Sustainability

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Inovação na Energia

Some technical drivers:

• Besides technical, drivers can be also economical, political, societal (estimulate new business models, players, efficiency, services for end users, …)

4 consecutive

days of 100% renewables generation

frequency oscillations

in the network

inertia in the system below the minimum

Why the need for innovation?

• Increased % of renewables• Increased electronics in the system• Reduced inertia in the system• Increased generation from consumers• Inversion of energy flows• Digitalization of communication and processes• New technological assets in the system• Integration into regional markets• Integration energy vectors• …

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Inovação na Energia

• Need for innovation widely recognized internationaly

Why the need for innovation?

OBLIGATIONArticle 8 (5) of Regulation 714/2009:“The annual work programme….shall contain …Research and Development activities…”

FINANCIAL ELIGIBILITYArticle 37 (8) of Directive EC 2009/72:“… approving the tariffs ensure that transmission and distribution system operators are granted appropriate incentive … support the related research activities …

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Inovação na Energia

• Heterogeneous mechanisms to support innovation

Support for InnovationSome examples

“The TSO Energinet has to ensure sufficient R&I activities necessary for the future efficient and environmentally friendly transmission and distribution of electrical power (extract from the Law of Electrical Power Supply).”“R&I costs of Energienet are covered partly as OPEX, partly as CAPEX and partly by external funding.”“The 17.5 M€ was a Public Service Obligation, financed by the tariff and is simply distributed on the yearly consumption of kWh (all electricity consumers contributed 0.004 DKK/kWh).”

Recently, the regulation on R&D activities has evolved with a specific part for regulated grid tariff dedicated to R&D. This part is detailed in the regulatory framework and foresees a dedicated 4 year budget for the regulatory period. Through this regulation, the French regulator (CRE) “gives RTE the means in order to launch and realize R&D and innovation projects which are necessary for the building of future electric grids”. It guarantees the absence of barriers coming from the tariff to launch such projects. For the period 2017-2020, 142 million Euros are dedicated in the regulated grid tariff to RTE R&D activities.

In the present configuration, R&D in power systems is mostly entrusted to few public specialized bodies, which are paid by the tariff through a specific component (€cents per kWh) which has remained rather constant along the years.

Source: ENTSO-E

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Inovação na Energia

• Heterogeneous mechanisms to support innovation. Not all countries provide incentives orsupport innovation explicitly.

Support for InnovationSome examples

Source: ENTSO-E

The yardstick regulation creates an environment where TSOs are incentivised to perform better, both in the short and the long run. Costs for innovation are included in the total costs (totex) of the sector and are remunerated to the TSO through the yeardstickapproach. In this way, the TSO can find their own balance in their degree of innovation and are able to optimise their choices.

Costs for R&D are treated as pass-through costs when they fulfill certain conditions, in order to avoid short term disincentives (~7 Million in 2016). It must represents a maximum of 0.3 % of the TSO’s regulatory asset base.

There are two main mechanisms. Network Innovation Allowance (NIA) and Network Innovation Competition (NIC). Up to 0.7% of the allowed revenue under the NIA mechanism can be accessed. The NIC gives National Grid access to bid for a share of up to £ 30 M for large scale demonstration projects

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Inovação na Energia

• Benefits for energy system and consumer

Innovation work being developed by R&D Nester

Source: ENTSO-E

• Innovations aiming at reducing total system cost, reduce risk of operation, increase security of supply, allow increased penetration of renewables

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Inovação na Energia

• Benefits for energy system and consumer

Innovation work being developed by R&D Nester

Source: ENTSO-E

• Innovations aiming at reducing total system cost, reduce risk of operation, increase security of supply, allow increased penetration of renewables

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Inovação na Energia

• Benefits for energy system and consumer

Innovation work being developed by R&D Nester

Source: ENTSO-E

• Innovations aiming at reducing total system cost, reduce risk of operation, increase security of supply, allow increased penetration of renewables

Consortium with partners fromPortugal, Spain, France, UK

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Inovação na Energia

• Benefits for energy system and consumer

Innovation work being developed by R&D Nester

Source: ENTSO-E

• Innovations aiming at reducing total system cost, reduce risk of operation, increase security of supply, allow increased penetration of renewables

BIG DATA OCEANConsortium with partners fromPortugal, Greece, Germany, UK, Italy, Cyprus, Israel

TDX-ASSISTConsortium with partners fromUK, France, Germany, Portugal, Belgium, Slovenia

Coordination of Transmission and Distribution data eXchanges for renewables integration in the European marketplace through Advanced, Scalable and Secure ICT Systems and Tools (TDX-ASSIST)

FLEXITRANSTOREConsortium with partners fromBelgium, Greece, Portugal, Bulgaria, Cyprus, Hungary, Spain, Germany, France, Ireland, Slovenia, Croatia, Turkey

An Integrated Platform for IncresedFLEXIbility in smart TRANSmissiongrids with STORage Entities and large penetration of Renewable Energy Sources (FLEXITRANSTORE)

OSMOSEConsortium with partners fromFrance, Spain, Italy, Slovenia, Belgium, Serbia, Switzerland, Germany

Optimal System-Mix Of flexibility Solutions for European electricity (OSMOSE)

(R&D Nester in Advisory Board)

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Inovação na Energia

• Benefits for energy system and consumer

Innovation work being developed by R&D Nester

Source: ENTSO-E

• Innovations aiming at reducing total system cost, reduce risk of operation, increase security of supply, allow increased penetration of renewables

Participation and membership in selected international organizations and foraAllows state-of-the-art information, networking and potential funding

European Technology and Innovation Platform

Smart Networks for Energy Transition

European Technology Platform for Electricity Networks of the Future

(supporting REN)

WG1 - Reliable, Economic and Efficient Smart Grid SystemsWG4 - Digitalization of the electricity system and Customer participation

WG5 - Innovation Implementation in the Business Environment

SC5 – Markets and RegulationWG C5WG B5

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Inovação na Energia

Innovation work being developedSome more real examples

• Contributing to decarbonization, benefiting from digitalization, improving the customer experience, contributing to security of supply

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Inovação na Energia

Innovation work being developedSome more real examples

• Contributing to decarbonization, benefiting from digitalization, improving the customer experience, contributing to security of supply

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Inovação na Energia

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